In a filing with Bursa Malaysia today, YNH Property said KSB had also entered into sale and purchase agreement (SPA) with RPSB, wholly owned by Singapore-based Fong Yu Investments Pte Ltd, for the sale of 25/100 undivided share in the land as part of the development plan.

YNH Property said it held full development rights on the land, measuring 2.39 acres in total, after signing a turnkey construction agreement with landowner Suileem Realty Sdn Bhd on Aug 28, 2013.

"This MoU is to record the agreement in principle between KSB and RPSB for the sale of the additional 24/100 undivided share of the land to RPSB (second SPA) and also the building and renovation contract agreement (B&RCA).

"The B&RCA is to be executed by both parties upon the conditions being fulfilled within one year commencing from the date of this MoU," it said, adding that the parties are obligated to sign the second SPA on or before March 31, 2016 for the sale of the additional 24/100 undivided share in the land to RPSB.

YNH Property added that a RM28.65 million performance deposit, which is to guarantee RPSB's performance of the second SPA and the B&RCA with KSB, would be paid upon the execution of the MoU.

It also said RPSB would bear the cost of investment incurred for the proposed development while KSB was responsible for the cost of investment for the balance of the 51/100 undivided share of the land.

YNH Property shares closed one sen or 0.54% higher at RM1.85 today, giving it a market capitalisation of RM732.4 million.